UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED FEBRUARY 29, 2000
Commission File No. 0-21816
PML, INC.
(Name of small business issuer in its charter)
Delaware 93-1089304
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
27120 SW 95TH Avenue
Wilsonville, Oregon 97070
(Address of principal executive offices, including zip code)
(503) 570-2500
(Issuer's telephone number)
Indicate by check mark whether the issuer (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act during the past
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes X No
As of March 30, 2000 there were 1,780,441 shares of Common Stock with $0.01 par
value outstanding, and 211,551 Class B Common Shares with $0.01 par value
outstanding.
<PAGE>
PML, INC.
Index
Part I. Financial Information
Item 1. Financial Information 2
Consolidated Balance Sheets 3
Consolidated Statements of Operations 4
Consolidated Statements of Stockholders' Equity 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussions and Analysis of
Financial Condition and Results of Operations 8
Part II. Other Information
Item 1. Legal Proceedings 11
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 11
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
----------------
PML, INC.
For the Third Quarter Ended
February 29, 2000
2
<PAGE>
<TABLE>
<CAPTION>
PML, INC.
CONSOLIDATED BALANCE SHEETS
Unaudited
February 29, May 31,
Assets 2000 1999
-------------- --------------
<S> <C> <C>
Current Assets
Cash $ - $ 571
Trade accounts receivable, less allowance for doubtful 2,049,240 2,106,210
accounts of $55,592 and $50,414
Inventories 1,478,588 1,670,459
Deferred income taxes 67,834 209,000
Prepaid expenses and other current assets 92,661 74,675
-------------- --------------
Total Current Assets 3,688,323 4,060,915
-------------- --------------
Property, plant and equipment - net 1,340,987 1,453,222
Intangible assets - net 29,636 27,469
Deferred income taxes 136,000 136,000
Other assets 23,073 104,768
-------------- --------------
Total Assets $ 5,218,019 $ 5,782,374
============== ==============
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 809,745 $ 1,596,512
Accrued Payroll and Related 472,954 312,964
Other accrued liabilities 551,392 300,948
Notes payable - related parties 247,551 247,551
Bank line of credit 1,591,720 1,714,450
Current portion capital lease obligations 69,354 70,153
Current portion of borrowings - related parties 60,615 77,891
Current portion of borrowings 348,217 355,852
-------------- --------------
Total Current Liabilities 4,151,548 4,676,321
-------------- --------------
Capital lease obligations, less current portion - 52,145
Borrowings - related parties, less current portion 35,821 58,985
Borrowings, less current portion 50,000 257,911
-------------- --------------
Total Borrowings. less current portion 85,821 369,041
-------------- --------------
Commitments and contingencies - -
-------------- --------------
Stockholders' Equity
Preferred stock, $.01 par value; authorized 25,000 shares,
no shares issued or outstanding - -
Class A convertible preferred stock, stated and liquidation
value $100 per share; authorized 7,500 shares, issued and
outstanding 4,950 shares, including accreted dividends 774,550 738,296
Common stock, $.01 par value; authorized 2,500,000 shares,
issued and outstanding 1,780,441 shares 17,804 17,804
Class B common stock, $.01 par value; authorized 250,000 shares,
issued and outstanding 211,551 shares. 2,116 2,116
Class D common stock, $.01 par value, authorized 100 shares,
no shares issued or outstanding. - -
Additional paid in capital 146,540 146,540
(Accumulated deficit) retained earnings 39,639 (167,744)
-------------- --------------
Total Stockholders' Equity 980,649 737,012
-------------- --------------
Total Liabilities and Stockholders' Equity $ 5,218,018 $ 5,782,374
============== ==============
</TABLE>
The accompanying notes are an integral part of these statements.
<PAGE>
<TABLE>
<CAPTION>
PML, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
For The Three Months Ended For The Nine Months Ended
February 29, February 28, February 29, February 28,
2000 1999 2000 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net sales $ 3,511,846 $ 3,352,728 $ 10,494,889 $ 10,260,967
Cost of goods sold 2,163,033 2,273,331 6,453,895 6,532,764
-------------- -------------- -------------- --------------
Gross profit 1,348,813 1,079,397 4,040,994 3,728,203
Operating expenses 1,111,677 1,205,652 3,455,110 3,734,003
-------------- -------------- -------------- --------------
Operating income (loss) 237,136 (126,255) 585,884 (5,800)
Other expense
Interest expense 65,042 72,960 203,939 238,223
Other (18,388) (116,309) (11,017) 44,801
-------------- -------------- -------------- --------------
Total other expense 46,654 (43,349) 192,922 283,024
-------------- -------------- -------------- --------------
Income (Loss) before income taxes 190,482 (82,906) 392,962 (288,824)
Income tax expense (benefit) 70,360 (33,464) 149,325 (117,233)
-------------- -------------- -------------- --------------
Net income (loss) $ 120,122 $ (49,442) $ 243,637 $ (171,591)
============== ============== =============== ==============
Basic income (loss) per share $ 0.05 $ (0.03) $ 0.10 $ (0.10)
============== ============== =============== ==============
Diluted income (loss) per share $ 0.05 $ (0.03) $ 0.10 $ (0.10)
============== ============== =============== ==============
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE>
<TABLE>
<CAPTION>
PML, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Class A Class B
Convertible Common Common (Accumulated
Preferred Shares Shares Shares Additional Deficit)
------------------ -------------------- ------------------ Paid-in Retained
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT Capital Earnings Total
------ ----------- ---------- --------- -------- --------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance, May 31, 1997 4,950 $ 641,561 1,776,816 $ 17,768 211,551 $ 2,116 $ 144,701 $ 103,662 $ 909,808
Preferred Stock dividends accreted 49,499 - - - (49,499) -
Common Stock returned and canceled - (125) (1) - 1 - -
Stock options exercised - 3,750 37 - 1,838 - 1,875
Net income - - - - 38,930 38,930
------ ----------- ---------- --------- -------- --------- ---------- ---------- ---------
Balance, May 31, 1998 4,950 $ 691,060 1,780,441 $ 17,804 211,551 $ 2,116 $ 146,540 $ 93,093 $ 950,613
====== =========== ========== ========= ======== ========= ========== ========== =========
Balance, May 31, 1998 4,950 $ 691,060 1,780,441 $ 17,804 211,551 $ 2,116 $ 146,540 $ 93,093 $ 950,613
Preferred Stock dividends accreted 47,236 (47,236) -
Net loss - (213,601) (213,601
------ ----------- ---------- --------- -------- --------- ---------- ---------- ---------
Balance, May 31, 1999 4,950 $ 738,296 1,780,441 $ 17,804 211,551 $ 2,116 $ 146,540 $ (167,744)$ 737,012
====== =========== ========== ========= ======== ========= ========== ========== =========
Balance, May 31, 1999 4,950 $ 738,296 1,780,441 $ 17,804 211,551 $ 2,116 $ 146,540 $ (167,744)$ 737,012
Preferred Stock dividends accreted 36,254 (36,254) -
Net Income - 243,637 243,637
------ ----------- ---------- --------- -------- --------- ---------- ---------- ---------
Balance, February 29, 2000 4,950 $ 774,550 1,780,441 $ 17,804 211,551 $ 2,116 $ 146,540 $ 39,639 $ 980,649
====== =========== ========== ========= ======== ========= ========== ========== =========
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE>
<TABLE>
<CAPTION>
PML, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
For The Nine Months Ended
February 29, February 28,
2000 1999
--------------- --------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net income (loss) $ 243,637 $ (171,591)
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization 266,841 311,168
Gain (loss) on sale of equipment - (648)
Changes in:
Accounts receivable 56,970 142,540
Inventories 191,871 135,037
Deferred income taxes 141,166 (121,306)
Other assets 61,542 58,444
Accounts payable and accrued liabilities (376,332) 85,494
--------------- --------------
Total adjustments 342,058 610,729
--------------- --------------
Net cash provided by operating activities 585,695 439,138
Cash Flows (used in) from Investing Activities:
Proceeds from sale of assets - 1,150
Purchase of property, plant and equipment (154,606) (102,311)
--------------- --------------
Net cash (used in) investing activities (154,606) (101,161)
Cash Flows (used in) from Financing Activities:
Net payments on bank credit line (122,730) (212,534)
Repayment of capital lease obligations (52,944) (68,775)
Proceeds from issuance of long-term debt - 24,607
Repayment of long-term debt (255,986) (217,679)
--------------- --------------
Net cash (used in) financing activities (431,660) (474,381)
--------------- --------------
Increase (Decrease) in cash (571) (136,404)
Cash at beginning of period 571 163,505
--------------- --------------
Cash at end of period $ - $ 27,101
=============== ==============
Supplemental Disclosures:
Interest paid $ 208,984 $ 249,228
Income tax paid 1,950 1,970
Non Cash Items:
Preferred stock dividends accreted 36,254 35,694
Accounts payable exchanged for long-term debt - 24,607
</TABLE>
The accompanying notes are an integral part of these statements.
6
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Financial Statements
The accompanying unaudited consolidated financial statements include the
accounts of PML, Inc. and its wholly-owned subsidiary, PML Microbiologicals,
Inc. The Company produces and sells diagnostic microbiology products used by
both clinical and industrial microbiologists throughout the United States and
Canada. In addition, the Company produces a wide variety of products on a
private label basis for medical diagnostics companies worldwide.
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and pursuant to the rules and regulations of the
Securities and Exchange Commission (the "Commission"). While these financial
statements reflect all necessary, normal and recurring adjustments in the
opinion of management required to present fairly, in all material respects, the
financial position, results of operations and cash flows of the Company and its
subsidiary at February 29, 2000, and for the period then ended, they do not
include all information and notes required by generally accepted accounting
principles for complete financial statements. Further information is contained
in the annual financial statements of the Company and notes thereto, for the
year ended May 31, 1999, contained in the Company's Form 10-KSB, filed with the
Commission pursuant to the Securities Exchange Act of 1934. Operating results
for the three-month and the nine-month periods ended February 29, 2000 are not
necessarily indicative of the results that may be expected for the full year.
Note 2. Net Earnings Per Share
During the quarter ended February 28, 1998 the Company adopted Statement of
Financial Accounting Standards No. 128, "Earnings Per Share" (SFAS 128). As
required by SFAS 128, the Company has applied the provisions of SFAS 128 to all
periods shown for purposes of computing earnings per share (EPS). The effect of
equity instruments is excluded whenever the impact on earnings per share would
be anti-dilutive.
<TABLE>
<CAPTION>
Information Needed to Calculate Basic Earnings Per Share
For the Three Months Ended For the Nine Months Ended
February 29, February 28, February 29, February 28,
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net income $ 120,122 $ (49,442) $ 243,637 $ (171,591)
Preferred stock dividends accreted (12,399) (11,289) (36,254) (35,694)
------------ ------------ ------------ ------------
Net income (loss) after accretion of dividends $ 107,723 $ (60,731) $ 207,383 $ (207,285)
============ ============ ============ ============
Average number of common shares outstanding 1,780,441 1,780,441 1,780,441 1,780,441
Average number of Class B common stock outstanding 211,551 211,551 211,551 211,551
------------ ----------- ------------ ------------
Average shares used in basic EPS calculation 1,991,992 1,991,992 1,991,992 1,991,992
============ ============ ============ ============
Basic income (loss) per share $ 0.05 $ (0.03) $ 0.10 $ (0.10)
============ ============ ============ ============
7
<PAGE>
Information Needed to Calculate Basic Earnings Per Share
For the Three Months Ended For the Nine Months Ended
February 29, February 28, February 29, February 28,
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Basic income $ 107,723 $ (60,731) $ 207,383 $ (207,285)
Add back preferred stock dividends accreted* - - - -
------------ ----------- ------------ ------------
Diluted income (loss) after add back of accreted dividends $ 107,723 $ (60,731) $ 207,383 $ (207,285)
============ ============ ============ ============
Average number of common shares outstanding 1,780,441 1,780,441 1,780,441 1,780,441
Average number of Class B common stock outstanding 211,551 211,551 211,551 211,551
Effect of common stock equivalents 211,960 - 102,104 -
Effect of preferred convertible stock* - - - -
------------ ----------- ------------ ------------
Average shares used in diluted EPS calculation 2,203,952 1,991,992 2,094,096 1,991,992
============ ============ ============ ============
Diluted income (loss) per share $ 0.05 $ (0.03) $ 0.10 $ (0.10)
============ ============ ============ ============
</TABLE>
*To the extent that the effect of preferred stock dividends accreted, common
stock equivalents, and the preferred convertible stock are anti-dilutive, they
are not included in the diluted earnings per share calculation. For the three
months ended February 29, 2000 and February 28, 1999, amounts excluded were
$12,399 and $11,289 of accreted dividends respectively, 176,786 and 176,786
shares of preferred convertible stock respectively. For the nine months ended
February 29, 2000 and February 28, 1999, amounts excluded were $36,254 and
$35,694 of accreted dividends respectively, and 176,786 and 176,786 shares of
preferred convertible stock respectively.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Forward Looking Statements
Management's Discussion and Analysis of Financial Condition and Results of
Operations contains certain forward looking statements that involve a number of
risks and uncertainties. Future demand for the Company's products is inherently
subject to supply and demand conditions, and to the unpredictable decisions of
other market participants. There can be no assurance that sales will increase
generally or within any specified product line or that the Company's margins
will stabilize or improve. Other elements that could cause results to differ
materially include competitive pressures and factors listed from time to time in
the Company's reports to the Securities and Exchange Commission, including, but
not limited to, this report on Form 10-QSB.
Year 2000 Issue
Starting in September 1996 the Company evaluated, selected, and appointed a
task team to upgrade and install a completely new MIS system. This system is now
operational and it, as well as other internal systems, were Year 2000 compliant
by the end of October 1999. This new IT software package controls major
operational systems including purchasing, scheduling, inventory control, sales
and distribution as well as providing the Company's new financial systems.
As of the date of the filing of this 10-QSB, the Company has not
experienced any Y2K computer or related problems. The management of the Company
is very optimistic that future operations will continue to be Y2K problem free.
8
<PAGE>
Canadian Exchange
PML is a US incorporated company which has significant operating locations
in Canada. Since management has previously determined that the functional
currency of the Canadian operations is the US dollar, it must consolidate its
foreign operations by using the appropriate foreign exchange rate in accordance
with generally accepted accounting principles applied on a consistent basis.
Unlike most of the Company's US competitors, the Company is in a somewhat unique
position in that it manufactures in both the US and Canada and regularly
receives approximately 40% of its revenues from Canadian sales. In the five
fiscal years ending in 1998, the exchange rate between Canadian and US currency
has been quite stable and has not fluctuated more than about 3% from its
"normal" trading range of about $.72 to $73 (US $ equivalent rate).
Starting in April 1998, the Canadian/US exchange rate started an unusually
sharp decline and reached as low as the $.63 range before stabilizing at about
$.67 in May 1999. This decline is unprecedented in PML's history and whether the
rate continues to decline, remains the same, or starts to recover is
unpredictable. However, since the Company's Canadian operations are such a
significant part of total operations, this decline in the Canadian exchange rate
has had a material adverse impact on the consolidated financial results of the
Company.
The sharp exchange decline started just prior to the nine-month period
ended November 30, 1998 and averaged $.660 during that period. The average
exchange rate for the current nine-month period was $.681, which does not
represent a significant difference when comparing period operating results.
Accounting Estimates
The preparation of the Company's financial statements in conformity with
generally accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and reported amounts of revenues and expenses during the reporting
periods. Actual results often will differ from such accounting estimates. In the
nine-month period ended February 28, 1999, net sales were negatively impacted by
about $91,000 due to a change in the customer credit estimate. For the same
period, cost of goods sold and operating expenses were negatively impacted by
nearly $46,000 reflecting a change in inventory reserves. The total of the
adjustments to these reserves increased the pre-tax loss by an estimated
$137,000 for the nine-month period ended February 28, 1999.
Results of Operations
Nine Months Ended February 29, 2000 Compared to February 28, 1999
As reported, income before taxes for the nine-months ended February 29,
2000 showed an increase in profits of $681,786 over the nine-month period ended
February 28, 1999. On a pro forma basis, if the nine-month period ended February
28, 1999 was adjusted for the negative effect of the "accounting estimates"
discussed above, the income before taxes for the nine-months ended February 29,
2000 would show an increase in profits of $544,786 over the nine-month period
ended February 28, 1999.
When comparing the two periods on a pro forma basis, sales have increased
slightly while cost of goods sold as a percentage of sales improved by 2.2%.
This significant improvement is a result of across-the-board cost savings in
most cost-of-goods areas such as inventory outdates, manufacturing rejects,
material usage, operating overhead, etc. In addition, the decrease in operating
expenses, which amounted to $278,893 or 2.7% of sales, can be attributed to
operational improvements and streamlining of functions that occurred in all
categories of operating expenses. The Company anticipates operating expenses as
a percent of sales will
9
<PAGE>
remain constant; however, they may increase when appropriate to support higher
company sales and revenues.
The following table presents the percentage relationship that certain items
in the Company's Consolidated Statements of Operations bear to net sales for the
periods indicated.
Percent of Sales
Nine Months Ended
-----------------
February 29, February 28,
------------ ------------
2000 1999
---- ----
Net Sales 100.0% 100.0%
Cost of Goods Sold 61.5 63.7
------ ------
Gross Profit 38.5 36.3
Operating Expenses 32.9 36.3
------ ------
Operating Income 5.6 0.0
Other Expense 1.8 2.8
Income (loss) before income taxes 3.8 (2.8)
Income tax expense 1.4 (1.1)
------ ------
Net Income (loss) 2.4% (1.7)%
====== ======
Liquidity and Capital Resources
The Company has financed its operations over the years principally through
funds generated from operations and bank loans. At February 29, 2000 the Company
had negative working capital of $463,225 compared with negative working capital
of $615,406 at May 31, 1999. The ratio of current assets to current liabilities
was 0.88 at February 29, 2000 compared to 0.87 at May 31, 1999. Quick liquidity
(current assets less inventories to current liabilities) was 0.53 at February
29, 2000 and .51 at May 31, 1999. The twelve month average collection period for
trade receivables was 54.0 days at February 29, 2000 compared with 52.3 days at
May 31, 1999.
Net cash provided by operating activities was $585,695. In the same period
of Fiscal 1999, net cash provided by operations was $439,138. Net cash used in
investing activities was $154,606 in the first nine months of Fiscal 2000,
compared with $101,161 used by the Company in investing activities in the same
period of Fiscal 1999. These expenditures were mainly for purchases of
manufacturing facility improvements and equipment in Toronto, Canada, and
computer license upgrades needed for the company's new MIS system to support
additional users as the Canadian locations came on line. Financing activities
used cash of $431,660 in the nine months ended February 29, 2000 as the net
result of repayments on the bank credit line, repayments on capital lease
obligations, and repayments of long term debt. This compares to cash used of
$474,381 from financing activities in the same period ended February 28, 1999.
The Company has a line of credit that has a current maturity date of
November 30, 2000. This line of credit is secured with substantially all assets
of the Company. The available amount under the line of credit is based upon 80%
to 85% of the eligible accounts receivable and 30% to 40% of eligible inventory
at the end of each reporting period, not to exceed $2.5 million. This loan will
be repaid primarily out of the Company's receivable collections and other cash
provided by operating activities. As of February 29, 2000, the Company was out
of compliance with one operating covenant required by its lender; however, the
lender waived the breach and modified the covenant through the end of Fiscal
2000, reducing the liability of future breaches.
The Company's total debt structure at February 29, 2000 is as follows:
10
<PAGE>
<TABLE>
<CAPTION>
Long-Term Current Portion
<S> <C> <C>
Revolving credit at prime plus 2.0%, due November 30, 2000 $ $1,591,720
Capital Lease obligations, due January 2001 69,354
Note payable at prime plus 2.0%, due November 30, 2000 83,308
Note payable at 6%, due May 2005 50,000 10,000
Note payable at 12%, due April 2000 50,205
Trade A/P converted to notes payable at 6%, due February 2001 204,704
---------- -----------
Total Bank and Term debt $ 50,000 $ 2,009,291
Notes payable to related parties 35,821 308,166
---------- -----------
Total long and short term debt $ 85,821 $ 2,317,457
========== ===========
</TABLE>
II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company occasionally has been made a party to incidental suits or other
legal actions arising in the ordinary course of its business. To the best
knowledge of Management, the Company is not currently subject to any pending
litigation that would have a material adverse effect upon its operations. The
Company was engaged in discussions with one purchaser concerning product quality
and had notified its product liability insurance carrier of those discussions.
To date, the Company has never paid a product liability claim.
Item 4. Submission of Matters to a Vote of Security Holders
There were no matters submitted to a vote of the security holders
during the quarter ended February 29, 2000.
Item 6. Exhibits and Reports on Form 8-K
No 8-K filings were made during the quarter ended February 29, 2000.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PML, INC.
(Registrant)
Date: March 30, 2000 By: /s/ Kenneth L. Minton
---------------------
Kenneth L. Minton
President and Chief Executive Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-END> FEB-29-2000
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 2,104,832
<ALLOWANCES> 55,592
<INVENTORY> 1,478,588
<CURRENT-ASSETS> 3,688,323
<PP&E> 4,755,605
<DEPRECIATION> 3,414,610
<TOTAL-ASSETS> 5,518,019
<CURRENT-LIABILITIES> 4,151,548
<BONDS> 85,821
0
774,550
<COMMON> 19,920
<OTHER-SE> 186,179
<TOTAL-LIABILITY-AND-EQUITY> 5,218,018
<SALES> 10,494,889
<TOTAL-REVENUES> 10,494,889
<CGS> 6,453,895
<TOTAL-COSTS> 6,453,895
<OTHER-EXPENSES> 3,444,093
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 203,939
<INCOME-PRETAX> 392,962
<INCOME-TAX> 149,325
<INCOME-CONTINUING> 243,637
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 243,637
<EPS-BASIC> 0.00
<EPS-DILUTED> 0.00
</TABLE>